The IPOX® Watch: Porsche AG
COMPANY DESCRIPTION
Dr. Ing. h.c. F. Porsche AG is a luxury car manufacturer headquartered in Stuttgart, Germany. The company was initially founded in 1931 and specializes in sports cars, SUVs, and sedans. In 2007, the family-owned firm was restructured and became Porsche Automobil Holding SE (PAH3 GR). This led to the spin-out of the firm’s car manufacturing unit, which took on the company’s original name Porsche AG. In 2012, Porsche AG was wholly acquired by car manufacturer Volkswagen, which is controlled by the Porsche-Piëch family (descendants of the founding members of both Porsche and Volkswagen) through Porsche Automobil Holding SE.
BUSINESS MODEL
Porsche sells high-performance luxury cars such as the iconic 911, Panamera, Macan, Cayenne and the purely electric Taycan. Through the majority owned (82%) subsidiary MHP, Porsche also provides IT and process consulting services in the automotive and manufacturing industry.
IPO HISTORY
On 09/29/2022, Porsche AG began trading on the Xetra Exchange in Frankfurt, Germany. The offer was led by Deutsche Bank, BNP Paribas, Goldman Sachs, JP Morgan, Morgan Stanley, Banco Santander, Bank of America, Barclays, Unicredit, Societe Generale and Citigroup. Selling shareholders included Volkswagen AG, the private equity firm T Rowe Price, as well as the government funds of Qatar and Abu Dhabi. The offer priced 99.02M preference shares (plus 14.85M through over-allotment offers) at €82.50, raising a total of €9.08 billion in the largest European IPO ever in terms of market capitalization. Volkswagen and the Porsche-Piëch family did not offer any ordinary shares of Porsche AG and therefore still control the firm’s voting rights. On the first day of trading, shares closed at €82.52 (▲0.02%).
The company was added to the IPOX® Europe Index (ETF: FPXE US, FPXE LN, EFPX IM) and IPOX® International Index (ETF: FPXI US) on 10/7/2022 and has gained ▲23.74% since addition to the indexes.
